Carbon Tax has come into affect last Sunday, making household prices rise to $9.90 a week.
However, most households will be better off with the tax, being compensated $10.10 a week.
The $23 per tonne price on carbon emissions has directly impacted 500 high polluters and is set to cut emissions by 159 million tonnes.
Treasurer Wayne Swan said the average cost rise would be 0.7 per cent, with many households receiving financial assistance to cover the increase.
Those better off from 1 July will be the lowest paid workers, who will get a pay rise of $17.10 a week and pensioners who will get an extra $338 a year.
Families that receive Family Tax Benefit A will get a $110 a child extra and some of the increases have been paid up front.
The new tax free threshold will be bumped up to $18,200 meaning people will receive more on their tax return.
On Monday Opposition Leader Tony Abbott declared that if his party is elected, the Carbon Tax will be dismantled.
“On day one of the new parliament, the carbon tax repeal legislation will be introduced,” he told reporters in Melbourne.
Visiting a supermarket on Monday, Mr Swan hit back at Mr Abbots tactics, showing only a 20c increase in the price of 11 items he bought on the Friday.
“Yes (the carbon tax), will have a modest impact on prices overall, but all of the scare mongering from Mr Abbott and the Liberals is disproved here by the items we’re looking at,” he told reporters.
To fight anger against rising prices, Prime Minister Julia Gillard has convinced 19 utility companies to enclose a flyer explaining the role of the carbon tax in household power bills.
Most of the bills mailed out for the rest of the year will include a double-sided sheet, costing tax payers $130,000.
Climate Change Minister Greg Combet said the “government is determined to ensure households get the facts about electricity prices instead of the myths they have been fed by the opposition over the last 16 months”.
Support for the carbon tax is at all new lows. The latest Fairfax/Neilson poll shows opposition to the tax has risen three points to 62 per cent, while support is down four points in a month.
For most consumers, the price hike of the carbon tax won’t be felt. The average price of milk is set to go up only by 3 cents, bread only 2 cents and meat around 9 cents.